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Facts
A search under Section 132 revealed that the assessee, a General Manager of Dhanalakshmi Srinivasan Group, received unaccounted cash salary. The assessee failed to comply with statutory notices and did not file returns for AYs 2012-13 to 2018-19, leading to ex-parte additions by the AO. These ex-parte orders were confirmed by the CIT(A) without the assessee having the opportunity to file submissions.
Held
The Tribunal, invoking the principle of natural justice, set aside the ex-parte orders passed by both the AO and CIT(A). It restored the appeals to the CIT(A) for a fresh de novo hearing, granting the assessee another opportunity to present evidence, subject to depositing a cost of Rs.1,000 per appeal.
Key Issues
Whether ex-parte assessment orders passed due to the assessee's non-compliance should be sustained, and if the assessee should be granted a fresh opportunity for a hearing based on the principles of natural justice.
Sections Cited
132, 153C, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI
The captioned seven appeals filed by the assessee are directed against the separate orders of the Ld. Commissioner of Income Tax (Appeals), Chennai-19 [CIT(A)] of even dated 05.12.2024 for Assessment Years 2012-13 to 2018-19. Since the facts and issues are common in these appeals, they are heard together and disposed off by this common order.
Brief facts are as under: A search u/s 132 of the Act, was conducted. on 15.02.2018 in the case of M/s. Dhanalakshmi Srinivasan Charitable and Educational Trust. The search covered the offices of various group entities, residences of key individuals, and specifically the residence of the appellant Shri J. Senthil Kumar, General Manager of M/s Dhanalakshmi Srinivasan Group, located at Door No. 280, Sowbakya Nagar, North Madhavi Road, Perambalur-621212. During the course of search, several incriminating materials were found that revealed the fact that the employees of the Dhanalakshmi Srinivasan were in receipt of unaccounted cash salary. During the course of assessment proceedings, the assessee did not comply with the statutory notice(s) issued for the AY(s) 2012-13 to 2017-18 by filing any return of income. Hence, AO made additions for AYs 2012-13 to 2018-19.
Assessee further challenged all the orders of assessment passed u/s.153C r.w.s. 144 of the Act before the ld.CIT(A), who proceeded ex-parte and confirmed the orders of the AO on merits.
Aggrieved, assessee is in appeals before us.
Before us, the ld. Counsel for assessee submitted that the CIT(A) has sent the notices however, these cases were adjourned whenever it was posted. Therefore, assessee did not find occasion to file the written submissions/responses. Therefore, ld. counsel prayed that the assessee may be provided an adequate and proper representation to file evidence and documents, if any, to substantiate its case. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence, no lenient view is to be taken in these cases and prayed for dismissal of these appeals.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice, we grant another opportunity of hearing to the assessee. We also find that assessee has not properly represented before the ld.CIT(A) despite notices for the reasons stated above. We also note that even before AO the orders are ex-parte. Accordingly, the impugned orders are set aside and the appeals are restored back to the file of Ld. CIT(A) for fresh appeal hearings after affording proper opportunity of hearing to the assessee subject to cost of Rs.1,000/- each appeal which shall be deposited by the assessee within 30 days from the date of receipt of these orders to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposits in both cases will be furnished by the Assessee before Ld.CIT(A) whose shall proceed for de novo appeal hearings, after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute these appeal cases diligently.
In the result, all these seven appeals filed by the assessee are allowed for statistical purpose.